Gitanjali Gems, MMTC continue to hit lower circuits

Shares of Gitanjali Gems and MMTC are continues at on sellers radar with pending sell orders for more than 15 million shares each on these counters. The stock price of these companies more than halved from their recent highs touched on the Bombay Stock Exchange (BSE).

MMTC locked in lower circuit for 17 straight days, is down 5% at Rs 79.75, its lowest value since July 2006 on BSE.

A combined only 13,075 shares have changed hands on the counter so far on BSE and NSE. However, there are pending sell orders for a combined 15.35 million shares at 1407 hours.

The stock of state-owned trading company has tanked 61% from Rs 207 on June 12, after the government divested stake through offer-for-sale (OFS) at a huge discount.

The government had sold 93.31 million shares or 9.33% stake of the company at an average price of Rs 61.33 per share, according to disclosure made MMTC to the stock exchange.

Shares of Gitanjali Gems too locked in maximum down circuit of a day for 10 straight trading sessions. There are pending sell orders for a combined 15.93 million shares on BSE and NSE. The stock of jewellery maker is currently trading lower by 5% at Rs 183, plunged 67% from its recent high of Rs 547 on June 18, 2013.

In a filing to the BSE, Gitanjali Gems said Macquarie Finance (India) Private Limited (MFIPL) has invoked pledged 5 million shares.

Pledged shares are generally invoked, when a borrower faced with a steep fall in share price, is not able to deposit additional margin with the lender.